March 20, 2019
The LME Cash–3M contango widened to $24.00 from yesterday’s $21.00 per mton as the Cash–April contango widened to $13.50 from $11.75 per mton, the April– May contango widened to $3.00 from an eight-month low of $1.50 per mton, and the May–June contango eased marginally to $7.50 per mton. As a result, we estimate that the Cash–3M contango is barely attractive for cash-and-carry deals, even for the most competitive players (i.e., those with access to the lowest financing and storage costs).
More details in full report.